ww managed service providers: market opportunity and … · saas and iaas offerings 57 cloud...

1 AMI-PartnersSource: AMI-Partners (www.ami-partners.com) 2017

WW Managed Service Providers: Market Opportunity and Landscape

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AMI-Partners505 Eighth Avenue, Suite 1705 | New York, NY 10018Phone : (212)-944-5100www.ami-partners.com

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MSP Landscape and UniverseGlobally segmented into three categories by revenue and other key characteristics. All three MSP categories rely heavily on SMBs for revenue. On average, over 75% of an MSP’s revenue is from the SMB space

Large asset heavy, with strong investments in their own datacenters

• Telcos, hosters, SIs offering managed IT serviceso Verizon, Rackspace, Dimension Data, etc.

• Global footprint

Mid-sized, most with own datacenters, but limited scale

• Strong managed services sales volume• National/regional footprint

Long tail – channel partners/VARs, few with own data centers

• Limited sales volume individually• SMB partner ecosystem players• Local footprint

Long-Tail Channel Partners/MSPs

Mid-Sized MSPs

Power Players

<$10M

$100M+

# of MSPs

$10M+

Many

Annual Revenue

Few

Current52,000 Globally

Forecast74,000 Globally

< 5%

70-80%


Global ICT Spending and the Growth of Managed Services As worldwide spending increases, channel partners like MSPs will play an increasingly important role in delivering solutions. Growth in the MSP space is driven by the opportunity to capture a larger share of ICT spending

Global SMLB ICT Spending($ Trillions)

Global SMLB Spending on Managed Services & Other Cloud Services

($ Trillions)

86%

87%14%

13%

2016 2021

ManagedServices

Other CloudServices

$ 0.58 T

$ 1.2 T

Proportion of spending on managed services and other cloud expected to double

15.7%

13.0%

‘16-’21 CAGR

Global Growth of MSPs

Driven by VAR migration and new entrants

2014 2016 2021

APAC

EMEA

Americas

48,000

74,000

40,000

MSPs are expanding beyond Managed IT Services

Other Cloud Services Desktop as a Service Platform as a Service Mobile Security IaaS SaaSRemotely Managed IT

Services

2016 Spending (in $M) $1,455 $2,362 $1,345 $48,512 $52,076 $83,713

2016-2021 CAGR 27.4% 23.5% 22.8% 21.6% 19.9% 13.0%

MSP spending capture is growing nearly 2x greater than overall spending

$2.5T

$4.0T10% CAGR

17%CAGR

MSPMSP

18% 24%

15.4 %

2016 2021


Key Coverage Areas for WW MSP StudyThe study will provide a comprehensive overview of the MSP landscape with granular insights into business operations, serviceofferings, business models, vendor partnerships and sales & marketing activities

Firmographics

▪ Customers served▪ Revenue breakdown▪ Best practices for success▪ Top verticals▪ Customer breakouts

Hosting Models & Platforms

▪ Private/public/hybrid share▪ Benefits and Constraints▪ Providers & Partnerships▪ Monthly spending

Business Model & Offerings

▪ Pricing models▪ Managed service offerings▪ Margins ▪ Challenges & Cost Drivers▪ Subscription renewal

Partnerships

▪ Current ▪ Planned▪ Evaluation criteria▪ Difficulties

Transformation Journey

▪ Strategic approach ▪ Profitability metrics (KPIs)▪ Services evolution

▪ Cost of doing business▪ ROI

Sales & Marketing

▪ Budgets▪ Staff composition ▪ Usage and sales impact▪ Effectiveness

Service Delivery Model

▪ Variety of tools▪ Usage of tools▪ Monthly spending▪ Preferred vendors

Cloud Services‘ Porfolio

▪ Specialized solutions▪ Current mix▪ Data managed▪ Planned solutions▪ Projected growth

1 2 3 4

5 6 7 8


Study Methodology and ApproachA mix of quantitative and qualitative assessments, representing a global mix of large, mid-sized and small/long-tail MSPs

• Quantitative: 950 MSP surveys

• Samples by Region:

• Mix of MSP types based on annual revenue

Depth Reach

Breadth

Region Sample

NA (US) 300

LATAM (Brazil, Mexico) 125

EU (UK, Germany) 200

M-APAC (AU, Japan) 175

E-APAC (India, China) 150

.

Timeframe: Quantitative surveys fielded in Q2 2017. Results available in Q3 2017.

Power Players

Mid-Sized

Long-tail

33 (3%)

199 (21%)

718(76%)

N=


Top 3 Business Challenges Faced by MSPsMSPs operate in a price sensitive environment; more than 60% of MSPs are also struggling to maintain close relationships with vendors

Investments in datacenter infrastructure

62%

Pricing pressure; commoditization66%

Maintaining close relationships with vendors

64%

.


MSPs to Vendors: Help Us …

1. Differentiate (service levels/technology excellence, customize, CX)

2. Automate (architecture planning, onboarding, provisioning)

3. Evolve, and sync with you better (training, bite-sized chunks)


Table of ContentsSlide # Slide #

Background, MSP Landscape, Objectives & Methodology 4

WW MSP Landscape, Trends and Insights Study 5

WW SMLB TAM – IT Market Sizing and Opportunity: 2016 - 2021 6

WW SMLB Managed Services Market Opportunity by Region 7

WW SMLB Managed Services Market Opportunity 8

Global Spending and the Growth of Managed Services 9

WW MSP Study Breadth, Scope and Coverage 10

MSP Landscape and Universe 11

Methodology and Approach 12

Key Findings and Coverage Areas for WW MSP Study 13

Key Benefits of the WW MSP Study 14

Key MSP Ecosystem Takeaways 15

Key Questions this Study will Answer 16

EXECUTIVE SUMMARY 17-21

Managed Services Firmographics and Customer Overview: MSP Snapshot 22

Managed Services Revenue Distribution & Service Offerings 23

Cloud Solutions Offered in Addition to Managed IT Services 24

Successful Business Practices and Value Proposition 25

Managed Services Pricing, Contracts and Customer Base 26

Cost Drivers Impacting Managed Services Business and Key Challenges 27

Tools Used to Deliver Managed Services 28

Managed Services Delivery Model & Platforms Used 29

Datacenter Overview 30

Sales and Marketing Overview 31

Vendor Alliance and Support 32

MSP Transformation Journey 33

FIRMOGRAPHICS/BACKGROUND 34

Firmographics 35

Managed IT Services Customer Overview 36

Revenue Breakout: On-premise vs. Managed IT Services vs. Cloud 37

Breakdown of Managed IT Services Revenue by Geography 38

Top 5 Industries Served for Managed IT Services 39

MANAGED IT SERVICES OFFERINGS AND BUSINESS MODEL 40

Type of Managed IT Services Currently Offered 41

Type of Managed IT Services Planned to be Offered 42

Breakdown of Managed IT Services Revenue by Type of Service 43

Managed IT Services Margins and Pricing Models 44

Managed IT Services Contracts and Monthly Deal Sizes 45

Managed IT Services Subscription Renewal and Customer Loyalty 46

Key Factors to Grow Managed IT Services Practice 47

Key Challenges in Providing Managed IT Services 48

Top Drivers for Adopting Managed IT Services Business Model 49

Actions Taken to Differentiate from Other MSPs 50

Cost Drivers Impacting Managed IT Services Business 51

MSP TRANSFORMATION JOURNEY 52

Managed Services Currently Provided and Services Provided at Launch 53


Table of ContentsSlide # Slide #

Time Taken to Launch Initial Services and Reach Profitability 54

Comparison of Workforce Dedicated to Managed Services Practice 55

Investment Required and Key Performance Indicators Tracked For Transition 56

SAAS AND IAAS OFFERINGS 57

Cloud Solutions Provided in Addition to Managed IT Services - Current 58

Cloud Solutions Provided in Addition to Managed IT Services - Planned 59

SaaS Offerings - Current 60

SaaS Offerings - Planned 61

CLOUD HOSTING MODELS & PLATFORMS 62

Managed IT Services Delivery Model 63

Hosting Models Used: Public, Private, or Hybrid 64

Evolution of Public vs. Private Cloud Mix 65

Reasons for Preferring Public Cloud 66

Reasons for Preferring Private Cloud 67

Monthly Spend on Hosting Platforms 68

Top 5 Hosting Platform Providers 69

Future Preference for Cloud Platform Providers 70

Proportion of Hosting Infrastructure Spent on Own Datacenter Vs 3rd Party Datacenter

71

Reasons for Using Own Datacenter 72

Key Challenges in Managing Own Datacenter 73

Frequency & Causes of Downtime at Datacenter 74

MANAGED IT SERVICES DELIVERY MODEL 75

Tools Used to Deliver Managed IT Services 76

RMM Platforms – Current and Planned Usage 77

PSA Platforms – Current and Planned Usage 78

Configuration Tools – Current and Planned Usage 79

Application Management Tools – Current and Planned Usage 80

Billing/Provisioning Tools – Current and Planned Usage 81

Ticketing/Servicing Tools – Current and Planned Usage 82

Backup and Disaster Recovery Tools – Current and Planned Usage 83

Endpoint Security Tools – Current and Planned Usage 84

IT Resiliency & Orchestration Solution(s) used to Enable DRaaS Solution 85

VENDOR PARTNERSHIP 86

Top Current Vendor Partnerships 87

Top Planned Vendor Partnerships 88

Vendor Evaluation Criteria 89

SALES AND MARKETING 90

Most Effective Sales & Marketing Methods 91

Sales and Marketing Activities Spent for Managed IT Services 92

Marketing Activities Utilized to Promote Managed IT Services 93

Marketing Success by ROI Generated 94

DISTRIBUTOR PARTNERSHIP Small and Mid-Sized MSPs 95

Partnership With Distributors 96

Distributors– Current Partnerships 97

Distributors– Planned Partnerships 98

Former Distributor Partners and Reasons For Not Partnering Anymore 99

Role of Distributors 100


Deliverables – Products & Services AMI-Partners is proud to offer a selection of actionable products designed to address your company’s pain points, help differentiate your business in a crowded marketplace, and win new clients

Description

• Comprehensive worldwide analysis of the MSP space with regional comparisons across NA, LATAM, EU, and APAC

1

• Enhanced Regional/Localized examination of NA, LATAM, EU, and APAC

2

• Detailed drill down and Breakout by service type, 57 countries/geos, 19 verticals, 12 employee size segments

3

• Key steps to implement a successful MSP business transformation journey and best practices utilized to seize managed service opportunities

4

• Executive Summary• Detailed Findings• PowerPoint Deck• Interactive Webinar

• MSP Segmentation

Offered at

• PowerPoint Overview • Excel based Tool • Pivot Tables

• Detailed Findings• PowerPoint Deck

Value added bundles are available for you to focus on what matters most to success !!!Please give us a call at 646 356 7510 or drop an email to [email protected] to schedule an Overview discussion of the study

Global Overview with Regional Breakouts

• MSP Market Segmentation - MSP Analysis by Size (Small <$10M, Mid-$10M+, and Large-$100M+) at Regional & Country Level available

• MSP Market Segmentation - MSP Analysis by Size: (Small <$10M, Mid-$10M+, and Large-$100M+) at WW and Regional Levels

Regional Focus with Country Breakouts • Executive Summary• Detailed Findings• PowerPoint Deck• Interactive Webinar

Worldwide Managed Services Forecast / 2017 - 2021

MSP Playbook

Country Level - US, UK, GE, BR, MX, JP, AU, IN & CH

All Available

Call for Customized

Pricing

646 356 7510

mailto:[email protected]


Small & Medium Business

Create Bundled

Offers

Upskill Channel Partner

Engagement

Market

Segmentation

Superior Customer

Experience (CX)

AMI Solves today’s Toughest Sales and Marketing Issues Globally

SMB Market

Key Success Factors AMI Solutions

Syndicated Studies• Country/ICT Overviews• In-depth assessment of attitudes,

adoption, brands, channels, etc.

Global Model• Market sizing, forecast

• 130+ ICT categories

• 50+ countries

• Interactive drill down lenses$

$

Cloud Playbooks• Cloud bundles and sales-lift

assessment

• Multi-country studies

Segmentation, GTM, Activation• Attitudes, behaviors driven, actionable

• Craft products, offers, and messaging

• Targeted campaigns via high-value

prospects and database scoring engines

Channel Partner Transformation• Benchmarking against top performers

• Partner skill-set roadmap


Contact InformationPlease reach out to discuss this opportunity with our regional teams

John RezacSVP

Global Accounts

T: 646 356 7510M: 832 368 5646

[email protected]

Kishalay Choudhury

[email protected]

(T: 91) 33 4003 3093 ext. 223

ww managed service providers: market opportunity and … · saas and iaas offerings 57 cloud...

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